So, I wanna become a first time buyer

ChewChew

Well as the title says.

I've been viewing a few houses and have put my name down on one to hold it with the estate agent untill I get mortgage approval.

My big big big questions are, as I am totally new to all this and I dont know who else I can ask:

1) If the property was worth say €300,000 would a bank give me the full amount or will they only give me a percentage and I have to cough up the rest?

2) If the property was worth say €300,00 and the bank told me I could only have €290,000 and I have to pay out the €10,000 myself could I actually apply for a mortgage of €310,000 to cover this?

I'm a little confused because I really dont know if I would have the full amount if they are looking for a percentage of the mortgage if you get me?

Anyways, any advice on the above or for a first time buyer doing this on her own would be hugely appreciated!

(apologies if you guys have had threads like this a million times over, I couldn't find an old one )

mikemac

Whereabouts in the country are you buying?

MysticalSoul

You will only get a % of the value of the property, and no you cannot ask for a mortgage for a higher value of what it is worth, as in the current climate, the way the bank would see it, is that there would be an increased risk of you defaulting on repayments, regardless of your credit rating.

Banks are no longer giving out mortgages of 100%, so you would need the balance % in savings yourself.

Dirk Gently

92% is currently the best offer I think, which means the bank would lend you 92% of the €300,000 and you would need to have 8% saved yourself. I know of a couple of developments with mortgage schemes where you give an initial holding deposit and another signing deposit totalling 10k. There's also rent to buy schemes and affordable housing.

You'll have to convince the bank that you can actually afford the monthly repayments on top of having the 8% saved. Remember interest rates will rise significantly shortly into your mortgage, potentially adding 100's of euro to your monthly repayments.

I'd suggest you talk to someone in more detail, doesn't sound like you've thought this through going by your post tbh. At the rate prices are dropping it wouldn't do any harm to wait a while and build up your savings.

ArphaRima

First off. You're mad. Prices are still declining. Wait. There is no rise forecast yet. Vested interests keep saying its as low as it can go and you should buy now, but yet the prices keep falling. Be patient. Rent.

Secondly. Only those trained and steadily employed in classic professional posts will get 100% mortgages: ie lawyers, solicitors, doctors, pilots, accountants etc. Banks have given them 100% mortgages for many years, and still do.

Dob74

You'll be able to borrow 92%. So you will have to have 24000 for a house worth 300,000.
Personally i wouldnt buy right now

ChewChew

Thanks a mill guys. this is just something at the back of my head. Am thinking about the affordable housing scheme so not 100% sure whats happening just yet!

D3PO

fluffer wrote: »

Banks have given them 100% mortgages for many years, and still do.

what banks are still giving 100% as far as i know they have all removed these products from the market ?

D3PO

ChewChew wrote: »

Well as the title says.

I've been viewing a few houses and have put my name down on one to hold it with the estate agent untill I get mortgage approval.

My big big big questions are, as I am totally new to all this and I dont know who else I can ask:

1) If the property was worth say €300,000 would a bank give me the full amount or will they only give me a percentage and I have to cough up the rest?

if you havent got a significant deposit saved your unlikely to be able to afford to buy a house as it indicates you live month to month and can only get by with where you are renting

remember rates are at an all time low. you have to consider that its likely whatever the mortgage payment would be now will be 50% higher in the coming years

jape

D3PO wrote: »

if you havent got a significant deposit saved your unlikely to be able to afford to buy a house as it indicates you live month to month and can only get by with where you are renting

remember rates are at an all time low. you have to consider that its likely whatever the mortgage payment would be now will be 50% higher in the coming years

If that, some economists are predicting the ecb base rate to rise to 9% by 2012. It is at 1.75% now and you won't start paying off the capital of the mortgage for years so, your repayments could potentially rise over 4-fold in the next few years if on a variable rate.

Senna

jape wrote: »

If that, some economists are predicting the ecb base rate to rise to 9% by 2012. It is at 1.00% now and you won't start paying off the capital of the mortgage for years so, your repayments could potentially rise over 4-fold in the next few years if on a variable rate.

FYP


OP from the sounds of it, you dont know the first thing about buying, which leads me to believe you will make a horrendous mistake by buying now.
When you say you have a house on hold (Ha Ha, EA's are getting desperate), Have you agreed a price? something near asking price?

My advice, read every post in this forum on buying and the market, then read every post on www.thepropertypin.com then when your finished, continue renting.

gurramok

OP, you will need 8% deposit of the total price first before you be even considered for a mortgage, thats 24k for a house.(more for an apt)

Also, banks base the amount they loan on so that you(ye) won't be forking out more than 35% of net (take home) pay on a mortgage.

oceanclub

ChewChew wrote: »

Thanks a mill guys. this is just something at the back of my head. Am thinking about the affordable housing scheme so not 100% sure whats happening just yet!

The affordable housing scheme is a dead duck ever since the real market value of property dropped below the AHS selling prices.

P.

simonbyrneno.4

Hey guys,

Me and my girlfriend put down a deposit on a house this week on a house in Wicklow but I'm concerned about actually being approved for the mortgage. We have basically been living from pay cheque to pay cheque, we've got a combined annual salary of about 36k as I'm a college grad still just working part time. The property is valued at 200k but we have the full 8% of 16k so were only looking for a mortgage of 184k. But we both have personal loans small ammounts each month but still. What chance do you'd think we have of being approved

spockety

simonbyrneno.4 wrote: »

Hey guys,

Me and my girlfriend put down a deposit on a house this week on a house in Wicklow but I'm concerned about actually being approved for the mortgage. We have basically been living from pay cheque to pay cheque, we've got a combined annual salary of about 36k as I'm a college grad still just working part time. The property is valued at 200k but we have the full 8% of 16k so were only looking for a mortgage of 184k. But we both have personal loans small ammounts each month but still. What chance do you'd think we have of being approved

:eek:
:eek:
:eek:

simonbyrneno.4

spockety wrote: »

:eek:
:eek:
:eek:

it's fully refundable! What do you think our chances are

oceanclub

"We have basically been living from pay cheque to pay cheque, "

Is your mortgage higher than your current rent? Have you factored in both the coming tax raises _and_ interest rates increasing?

P

D3PO

simonbyrneno.4 wrote: »

Hey guys,

Me and my girlfriend put down a deposit on a house this week on a house in Wicklow but I'm concerned about actually being approved for the mortgage. We have basically been living from pay cheque to pay cheque, we've got a combined annual salary of about 36k as I'm a college grad still just working part time. The property is valued at 200k but we have the full 8% of 16k so were only looking for a mortgage of 184k. But we both have personal loans small ammounts each month but still. What chance do you'd think we have of being approved

You have no chance at all.

D3PO

simonbyrneno.4 wrote: »

Hey guys,

mortgage. We have basically been living from pay cheque to pay cheque, we've got a combined annual salary of about 36k as I'm a college grad still just working part time. The property is valued at 200k but we have the full 8% of 16k so were only looking for a mortgage of 184k. But we both have personal loans small ammounts each month but still. What chance do you'd think we have of being approved

why woudl you even contemplate buying even if the banks would lend you the cash which 110% wont happen. this is wreckless beyond belief you cannot afford to buy.

oceanclub

simonbyrneno.4 wrote: »

it's fully refundable!

Why would a developer be accepting deposits that can be fully refunded?

P.

Senna

oceanclub wrote: »

Why would a developer be accepting deposits that can be fully refunded?

P.

I'm guessing he means booking deposit, so yes fully refundable.

Fighting Irish

simonbyrneno.4 wrote: »

Hey guys,

Me and my girlfriend put down a deposit on a house this week on a house in Wicklow but I'm concerned about actually being approved for the mortgage. We have basically been living from pay cheque to pay cheque, we've got a combined annual salary of about 36k as I'm a college grad still just working part time. The property is valued at 200k but we have the full 8% of 16k so were only looking for a mortgage of 184k. But we both have personal loans small ammounts each month but still. What chance do you'd think we have of being approved

lol

simonbyrneno.4

D3PO wrote: »

why woudl you even contemplate buying even if the banks would lend you the cash which 110% wont happen. this is wreckless beyond belief you cannot afford to buy.

So I'm guessing you guys don't think we will get it? But we've done out budgets and such things that show that we can afford it. What factors do banks take into consideration when going through a mortgage application?

gurramok

simonbyrneno.4 wrote: »

So I'm guessing you guys don't think we will get it? But we've done out budgets and such things that show that we can afford it. What factors do banks take into consideration when going through a mortgage application?

Job security(have you worked full time for the last year) and those loans.

Loans reduce the amount of potential mortgage they will give you as i said earlier:
"banks base the amount they loan on so that you(ye) won't be forking out more than 35% of net (take home) pay on a mortgage. "

simonbyrneno.4

gurramok wrote: »

Job security(have you worked full time for the last year) and those loans.

Loans reduce the amount of potential mortgage they will give you as i said earlier:
"banks base the amount they loan on so that you(ye) won't be forking out more than 35% of net (take home) pay on a mortgage. "

I'm still only part time and my girlfriend is only full time for the past 9 months. The mortgage works out to be under the 35% of our monthly average pay but that isn't taking into account the likelyhood of tax rates or interest rates increasing.

irlrobins

Is your gf on probation currently? Is she permanent?

From the information you've given to date I don't think a bank will offer what you're looking for. They're very restrictive with their lending in the current climate.

simonbyrneno.4

irlrobins wrote: »

Is your gf on probation currently? Is she permanent?

From the information you've given to date I don't think a bank will offer what you're looking for. They're very restrictive with their lending in the current climate.

She's been made permanent recently. How long does it take to get an answer from the bank normally? I don't really blame the banks being so tight with lendin in the current enviroment

irlrobins

Turn around time is pretty quick, usually less than 5 days. Provided of course that you've given them all the required docs (pay slips, P60s, proof of savings, etc).

Eglinton

Simon, I'm sorry to have to say but ye are in no position to buy a house for that amount at this point. You simply don't meet the sort of criteria banks require these days. Your part time job and those loans will mean a certain 'no' within 5 minutes of meeting the bank manager.

According to BoI's mortage calculator, even if ye did get a mortgage, your combined salary would entitle ye to a maximum of 162K.

The fact that your combined salary is only 36K is a little worrying. It's highly likely that the banks wouldn't even consider you as you're only part time so presumably your other half is making a lot less than 36K which means she could only get a much smaller mortgage.

My advice is to keep saving, clear those loans (and don't take out any more loans!!), and get a permanent job. There's no rush! Houses will be falling for a long time. If you're looking at a house that's asking 200K, then presumably it's well away from Dublin and likely to plummet even faster.

Moonbeam

simonbyrneno.4 wrote: »

Hey guys,

Me and my girlfriend put down a deposit on a house this week on a house in Wicklow but I'm concerned about actually being approved for the mortgage. We have basically been living from pay cheque to pay cheque, we've got a combined annual salary of about 36k as I'm a college grad still just working part time. The property is valued at 200k but we have the full 8% of 16k so were only looking for a mortgage of 184k. But we both have personal loans small ammounts each month but still. What chance do you'd think we have of being approved

Congrats.
36k is not a very high income and the loans will really go agains't you.
The rule of thumb is wages x 4 not sure if it still works so in your case 144k
92% is the highest mortgage that anyone gives now but they may not offer you this much.
Is it a new house?I think you will be lucky to
If they give it they will most probably want a guarantor but I think with those wages and the current climate that you do not stand a chance esp not with loans and so little savings.

snaps

House prices here in Mayo have really slumped (Town i live in has over 200 propertys on daft). Im waiting to buy now, but really need some sort of advice when we reckon prices will be at their lowest. Ive heard about people making stupid offers on empty houses and getting a deal done (Some estates in my town dont have 1 house occupied and asking prices have dropped nearly 40%)